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Freeze Systems has 20-year bonds outstanding with a coupon rate of 9 percent. Interest is paid annually. The face amount of each bond is $1,000.

Freeze Systems has 20-year bonds outstanding with a coupon rate of 9 percent. Interest is paid annually. The face amount of each bond is $1,000. What is the company's pretax cost of debt if the bonds currently sell for $800?

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